Liverpool managerial target Xabi Alonso has reportedly held talks with Bayern Munich about taking over at the Allianz Arena.
The former Spain midfielder is said to be 'leaning towards Bayern' as he mulls over his future beyond this season.
Alonso is the favourite to replace Jurgen Klopp at Liverpool after the German confirmed this would be his final campaign in charge.
The 42-year-old has earned a growing reputation as one of Europe's most exciting young coaches during his time in charge at Bayer Leverkusen.
Liverpool target Xabi Alonso has reportedly held talks with Bayern Munich
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Leverkusen are 10 points clear at the top of the Bundesliga and look set to end Bayern's 11-year run of winning the German top flight.
He has caught the eye of Liverpool, where he spent five years as a player between 2004 and 2009.
But Bayern are also in the market for a manager, with Thomas Tuchel to leave at the end of the season.
And Sky Sports in Germany claims has delivered some potentially bad news for Liverpool.
The report says that initial talks have already been held between Bayern and Alonso.
Bayern view the discussions as 'positive', with it being claimed that Alonso is edging towards taking over in Munich.
However, he is yet to make a final decision as to whether he will leave Leverkusen after two years in charge.
Bayern would also have to stump up between £12.8million and £21.3m in compensation, depending on how many trophies Leverkusen win this season.
But Bayern chiefs are said to be 'cautiously optimistic' they can secure a deal for Alonso.
It is claimed that, if he does leave Leverkusen, then it will be most likely to Bayern and not Liverpool.
That could come as a major blow to Liverpool chiefs, who will surely have been eyeing Alonso as a potential replacement for Klopp.
Klopp will bring the curtain down on a glittering spell on Merseyside and will hope to add more trophies after winning the Carabao Cup last weekend.
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Xabi Alonso has impressed at Bayer Leverkusen and is wanted by Bayern Munich
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The 56-year-old gave a glowing reference of Alonso when asked about the former World Cup winner last month.
"Xabi is doing an incredible job," Klopp said in February.
"If you would have asked me eight weeks ago about Xabi Alonso, I would have gone 'Oh my God!'
"Always what I said, the dinosaurs if you want, [Carlo] Ancelotti, [Jose] Mourinho, [Pep] Guardiola, maybe me, we will not do it okay, maybe Mourinho - but all the rest will not do it for the next 20 years.
Jurgen Klopp will leave Liverpool at the end of the season
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"The next generation is already there and I would say Xabi is a standout in that department...
"Former world-class player, from a coaching family as well which helps a little, he was like a coach already when he was playing.
"The football he is playing, the teams he sets up, the transfers he did, it is absolutely exceptional."
